good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla, with david faber and jim cramer pfizer says early data shows a three-dose regimen does neutralize omicron the s&p needs about 19 points for a fresh closing high we may get halfway there our road map begins with phiers versus omicron plus, well, apple shares are at an all-time high, despite

continued reports back and forth that 13 production mae by falling short of targets. and whatever it takes to double capacity for the electric f-150 pickup this has brought us back to the day before thanksgiving close. >> correct i think moderna will say the same thing, you need three, the effectiveness of three is much more dramatic than two, including omicron, and whatever the next five or six what we want to understand is omicron is no more the end than any other -- we could end up doubling the number of greek letters we need. david, when you see this kind of thing and listen to what dr. bourla says, these vaccines are powerful, and for those who keep

giving up on science keep selling at the bottom. >> i hope this will mark near the end of the pandemic -- >> it's just not possible -- it goes to epidemic, or theoretically just a bad flu. >> i would still like those the numbers on fully vaccinated people if you've got three shots and you still get a breakthrough, what is the actual impact? does it equal the flu? worse? better listen, i don't want to overlook it, the day after thanksgiving when we saw the market down so sharply, we said we know so also at this point we still don't know a lot we know that pfizer, with a three-shot regimen will prove effective. moderna, your expectations the

same, but we still don't have a sense how quickly omicron will spread we hope the anecdotal evidence that it's a milder symptom variant. >> the goldilocks is that it spreads more quickly, overtakes delta, but ah fewer life-threatening consequences. that is the one that says open doors and travel everywhere. it's almost too good to be true, but i do think what we're saying here, i keep coming back to the notion of acceptable risk. we now know, fur you're immunocompromised, you can go and do things. >> bourla was asked about that yesterday. he said there's too many -- but to david's point, jpmorgan 'outlook is out. our view of 2022 will be thee of

a full global recovery, end of the pandemic and return to normal economic and market conditions. >> i'm working on what i'd say tomorrow for my invest club talk i keep coming back to one word -- boom we had a boom development, that friday brought everything down use the royal caribbean or united air, but you want to use the credit card companies, you come back and say, wait a second, maybe we just go right back to the tape and we start really moving the economy, become international again not saying that zoom will be disqualified you have keyed endlessly on being travel that's important, because business travel is the people who pay full -- but i think we could go to a period testify economic boom.

we have a boom post the spanish flu. it's an alog you said me to do post-bubonic plague >> globalization wasn't really in play there. >> you know what i'm saying. i'm saying, can you imagine how you would lead your life right now in new york city, we're fully vaccinated and you can't get a reservation. >> life has been normal for me for quite some time. >> better than normal. >> really? >> i can't get in anywhere, what are you talking about? >> i'll make some calls for you. no here's a good example. if we could as many

semiconductor chips as we wanted to do, we could do 20 million cars and trucks. we're starting to see numbers that could be extraordinary. >> toyota, a new battery plant announced yesterday. that said, pfizer is still await you new data, and bourla did talk about that on squawk this morning. >> we are getting enough conclusions to believe that if there's a need for omicron, that should be a good one i think we have a good chance to see if we need an omicron vaccine s. it will be very effective appeared not lose our 4 billion capacity for switching to production of the vaccine >> dudley has a piece out today, firmerly of the fed, now saying it's not just about the taper next week, but an idea of rate

hikes we are not yet accustomed to. >> i think that's your opportunity ahead of the santa claus rally. we all know that the first rate increases, if they're not taken in lockstep, then we're going to be fine. it's a representation that the economy is for real. david, at a certain point we'll get something -- i talk about you endlessly and the business travel the other thing you said that obviates a lot of this talk is we'll have something to take if we get it. when we have an antiviral, you say, you know what i think i'll go to italy and carry that with me. >> i think it will be used prophylactically, both are potentially effective. regeneron in a -- >> they're not in a pill form. >> that's not helping. >> that's jules verne.

>> we're talking about -- stop saying -- >> we're talking pfizer not going -- which is great if you can do it, but it takes all day, and it's going to be a much different approach when you have the pills that merck may approved by the end of the year. i want to come back to the fed for a second people allocating assets, their fear right now is probably as much or more the fact that transitory is being retired as a word by the fed their, as opoes to in concern about omnicontrol. you may talk about boom, but there is some concern about the fed right now. >> the companies -- there's a lot of companies that benefit from transitory the one that is

just, i think classically hooked -- stanley, black & decker, they had a big increase in costs, problems with the ports and they sell a division, which i felt was not an important division. that is -- there's your template, a company that's higher costs, that can pass them on through home depot with port problems that are easing with cash flow that's fabulous. that's what you buy, not rent the runway >> or stitch fix >> i was hoping we would get to stitch fix it's 9:09. >> it's not a large market cap we tend to focus on things with bigger numbers. >> like apple. >> you said to do apple? >> closing in on $3 trillion. in september and october, iphone 13 production did fall short of

plans -- [ laughter ] >> don't laugh when i mention nikkei and supply chain stories. >> we have all of them with -- >> after all that evidence. >> live by the sword, die by the sword. i discount that story just as much -- remember, the previous story was that it's weak demand, tons of supply here we have strong demand, not enough supply. if we were in any other business, this is like saying, literally, the bills when they wo won on monday -- >> they didn't win. >> you have to say, do you like apple? do you think it's doing the right thing? is it selling well in china? the answer here entirely is you're buying a stock that is highly priced, but now the one that people feel the most confident about, katie is the ax if you have someone who knows

more, i'm with kate. >> not to draw a line between the two things we did announce a diplomatic boycott of the olympics. boris johnson this morning following suit australia followed suit overnight. china says the u.s. will pay in some way do you think it would be a corporate that would be collateral damage? >> if you're a boeing, a challenged position in my charitable trust, i think you would be worried the big order won't come when you make it in china, apple, starbucks, they tend not to want to penalize you, but the big hope -- use the 737 max back in the air and then orders to boeing, and that, i think grows dimmer when we have a -- i don't want to call it a spat anymore, but a cold war cold war is the right thing. we're talking about a cordon of communist china because of the human rights violations.

say something. >> okay. cold war is a loaded term. >> oh, there you're letter x from foreign affairs, kenin >> yeah, that was kenin. >> key not say cold war? when they fly over the 7th fleet every dade they buzz the 7th fleet for -- >> oh, no, we're having a cold war with russia, it's not -- >> they're having a cold wear ever it's like "the man churian candy. >> tesla cars, nike shoos? >> that piece on tesla, hole coy, i wanted to buy a tesla man, how are you doing, rivian you know what rivian is? >> what? >> the one. >> the one >> we're going to talk about

this street-high target for tesla. deutsche reiterates a buy, and of course some credit card data that looks at rivian reservations, interesting tough out of barclays. futures have been eroding, but still in the green we're back in a minute as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary,

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barclays has a note out showing that livian has fewer deposits than either tesla's

cybertruck or ford's f-150 lightning. it says the deposit count is only 8%. it's not a dollar figure, because -- >> you have to put more down there's a fantastic piece about which had the best numbers you could easily day you can walk away from a ford or easily walk away from a tesla i think it comes down to that rivian is amazon, ford will sell its rivian stake, put more money into its own ev, and tesla has one plug of the truck. tesla has huge numbers of fan people mold buy whatever tesla puts out, including an old hess truck made into a tesla. tesla could coupme out and maken

earthmover and theywould have hundred,000 subs >> water was the gas that actually used real water >> that's what we thought steve jobs wanted the car to run on. >> hydrogen -- green hydrogen would be quite a move. >> what are you saying here? >> what am i saying where? >> what are you saying about rivian >> when the orders look good. >> you never say nothing. >> for you, jim, you're the one who talked to farley and benioff. and also -- >> if you listen to the numbers that farley is talking about, the street is looking for

300,000. why this doesn't get more press, so to speak, one of the reasons i have on my conference call tomorrow is because this would be monumental. this is the first real challenge. >> well, it does get press you talk about it every day. the fact is the storm has paid attention -- don't -- what are you doing that for stock is up. >> don't ever use third person. >> it's been one of the best performers -- >> now you're -- >> there you go, buttering you up you have been talking about it a great deal. >> this ford deal he's making with salesforce is the beginning of what i call the smart truck they come in, you get an order, you need azex or trex, to build a balcony, so then you go to

home depot in the cloud, i want trex boards -- >> i know what you mean. >> and then you go, and it's there for you, they put it in your truck, and then you're with the customer, a savings of two hours. why? you can get another job? >> it's also interesting commercials turning into the tip of the speer for some of this stuff, which farley did talk about. take a listen. >> we want to be number one in battery electric commercial vehicles it's the heart of our profitability. as mark said, this is a really big growth opportunity to take our battery electric vehicles, create in commercial create a cloud, aboubut we have the opportunity to scale production. we have the ability to go a great cloud service for our commercial customers that's what we're going for. >> what he's basically saying

is, you may think that musk has the world of ev, whatever he says, but they are -- ford in the end is the ford truck, the f-150, the super-duty which has like 500,000 miles what he's saying is, look, we will get the customer and then retain -- this is customer retention that he's talking about, but i think it matters. $39 a month, but what's going to happen, carl, he is staking ford's reputation on being ev much faster than anybody realizes the old ford made unprofitable cars all over the globe. that, by the way is not a recipe for wanting the stock. this man is making cars and trucks, including the mustang mach i think he has an ev bentley.

>> they don't make those they're very heavy they'll need a large battery -- >> i'm using the google box. >> yeah, i remember that. while jim does his search, we'll have cramer's mad dash, and count as the s&p is knocking on the door of a fresh closing high don't go away. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones let's partner for all of it. ♪ ♪ ♪ digital transformation has failed to take off.

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then your bank should help you track your spending. virtual wallet® is so much more than a checking account. its low cash mode feature gives you at least 24 hours of extra time to help you avoid an overdraft fee. okay, he's gotta be close. he's six blocks in the other direction. make a left, make a left, make a left! he made a right again. virtual wallet® with low cash mode from pnc bank. one way we're making a difference. all right. i'm questioning why he's doing this as a mad dash explain goodyear tire. >> first of all i went to a restaurant a few years ago i had the reservation cramer, and the mai -- listen to me and

listen good. this is an ev play you need traditional tires deutsche bank comes out, upgrades it. when i had this guy on, i said, i don't know, this stock could be at 50 i used this as a representation of boomtown with clarke gable. >> piece are always buying cars. >> they have the right tires you need different tires >> there's now a technological advantage. these are not just your parents' tires. the quarter is going to be unbelievable, all right? >> it is ivd just believe you and leave it at that >> no, it's not a raj story, for heaven's sake. >> ooh.

>> oh, what was that a reference to i had him on "mad money", i said, is it really possible to do these kinds of numbers? there's great confidence here. raw cost is not good, obviously. if you want a stock that will work in the atmosphere we jest discussed, three-dose vaccine, put this on the list just as much as marriott people are going places, david, doing things. >> their not residenting the runway they're not stitch fixing. >> it's still hard to get on a plane to go to the uk, with all the testing regs, quarantine. >> that would be a thing of the past soon. >> is it. >> soon enough for me to get there? >> yeah. we have an opening bell coming up. coming up. stay with us.

♪ ♪ ♪ ♪ ♪ ♪ ♪ cases of anxiety in young adults are rising as experts warn of the effects on well-being caused by the pandemic. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ >> announcer: the opening bell is brought to you by -- my assessment is we will have regular appearance of different variants that's why we are preparing that

for months there will be more, i'm sure or i'm very -- it's very highly likely we will be -- that's pfizer areas al better bourla this morning on "squawk box. we talked about jpmorgan saying the end will be in 2022. bill gates said the accuse phase will end next year, with occasional outbreaks, but drugs will be able to suppress hospitalizations to the point where the medical system can handle it. >> i think one of the things we tried to figure out is, when does the hospital system break down that's when, for instance, it was being used against people who don't get vaccinated, some of the towns they're in, with a heavy lack of -- have had hospitals somewhat overwhelmed. >> by the way, that's still a concern with omicron as well if it moves faster than delta,

even if the symptoms are less, conceivably you're infecting more people, you could end up with -- >> any death is bad, but 50,000 deaths, which has been the average for the flu the last decade, dowe get that low? >> yeah. >> do you think that's significance >> yes here's the opening bell. [ bell ringing ] a lot of topics for the new year, jim, including ge over at b of a, along with emerson and carrier. >> i like ge i did not appreciate the downgrade of honeywell, which i think is saying that the charitable trust owns it you may be able to combat the so-called headwinds.

overall honeywell has reinvented itself ge, dave, we had used to think you shrunk to grow, j&j goes to 170, ge's breakup so far, you would say the reviews have -- >> underwhelming it's very interesting that both these iconic companies, say what you will, with incredible histories, ge and j&j in the same week made decisions to break apart. what they believe would be greater capital allocations. any number of things they would call -- and the market just didn't respond that is an exception to what we have seen in the past, from the shrink to groh country of plays, where there was quite a period of time, it would seem, you would get an enthusiastic responsibilities

it is notable, the absence right now. >> you know, technologies emerges with raytheon, and then gives you three incredibly viable businesses. >> you're talking about otis and carrier. which. >> raytheon. >> you're just talking about this nothing but net greg is -- you know, greg by nature was a financial guy first of all, otis, carrier have both done very well. utx merging with raytheon. they have created a lot of value through that it took years to finally accomplish it all, but you're right, jim, and now a buyback that carl just mentioned as well will get go that same route? is it a -- i don't know, from andy trust perspective, probably not. >> no. i do think we can't forget that they put really good people in

charge of these divisions. i happen to think that dave getland who's been on our show, has been a remarkable executive. the stock is up almost 50% judy marks, she was the first person who told me her stock should be up more -- she was the one mo said, look, i'm getting on a train and on a plane -- they have a fabulous jim cramer who running the america there is she has done a great job what do i have to do, zoom to sell a giant elevator? i have to get on a plane she was getting on planes when people weren't. >> this booking guidance from southwest was pretty good, depied the worries over the past few days down this morning, but overall, united booking holdings, norwegian all hanging in there, leading the s&p. >> i think the stocks were up in

anticipation, but they deserve to go higher these are reactions to pre-three shots. i felt that southwest has fall been behind, but its domestic. david mentioned, when you fly overseas, when you're going to be quarantine, it kind of wrecks the vacation >> or even the first day if it's a short trip and you're waiting for the pcr trip, and get back into our country, need to test to get back in that may have an impact on some people's international travel plans. >> by the way, we're going to talk to jordan and kelly of southwest tomorrow. >> that's great. look, i'm rooting for southwest. i've been recommending southwest basically since it came public the last couple quarters have been rocky that doesn't mean the culture that is changed. they do have union issues. but at the same time, international has been blunted by the fear of going overseas

for state and domestic it will be important to see american, by the way, doug parker, you know, when you talk about the stock doubling, he didn't talk about the stock coll collapsing i like doug. >> i don't have an opinion, yeah i like -- >> that's the third thing i've mentioned. i think sebastian. i know him better than the other guys gary kelly is always great, come on, tells it like it is. happy now? is that all you wanted >> that's all you wanted is that too much to ask. roku with a long-running dispute, it looks like they finally have a deal. what a week, david, it's been in streaming in general >> viacom had a good day

yesterday. we had bob bacchus join us. >> thank you he did more forcefully answer questions than in the past a lot. he loves pluto. >> i try to block pluto. >> they're going to be spending a lot of money at viacom to obviously continue to roll out streaming. they did say subscriptions were rising, and have risen more than anticipated, even only a few weeks back in terms of during this fourth quarter. our parent company a different story yesterday, jim not having to do with streaming, but having to do with broadband additions or the lack thereof. investors have been looking for as many as 300,000 7% to 8% ebitda year over year, but it was the -- that took some investors by surprise, i guess

charter also came down sharply on the same thing of changes in moving patterns. perhaps a lot of people did move and they're not moving we've got to clarify exactly what's going on, but something that they think will return to normal and, therefore, will not be a long-term pressure on their ability to ability to add broadband subscribers. >> no secular decline versus my phone in watching -- >> you know, listen, for exampled wireless mobile in the home as a result of 5g has always been a question, but there's not a lot of people who believe it will be a viable competitor certainly some people may choose to only have a phone subscription, but the wireless wars on the other side of this, of course, comcast and spectrum, charter, competing very vigorously with the incumbents, using their own networks against them, by undercutting in terms of price

that's been interesting to watch as well. no real winners here comcast down for the year, charter down for the year, at&t down for the year, t-mo down for the year basically a sector to stay away from in 2021 >> okay. also down for the -- >> both of us are like, you have nothing to say >> return service? okay you know what else is down for the year, stitch fix, as mark mahaney writes they have hit a growth wall. >> and evercore stepping off the runway they only and the 15,000 people quarter to quarter they're readily guiding down for the next quarter they also had problems with the supply chain this is a profitable company with cash flow, so we're not

talking about a company that was made up. they do have -- look, i'm defending this only because this thing is just cratering. there is no fundamental story to buy it, other than the fact it does have 4.4 million customers. so we just decide to take it down to ten. it was a bad quarter by their own admission.

>> unless you think that the stock is worthwhile. docusign, have you seen zoom >> yeah. >> zoom is -- it's $185, down $451. >> down 45%. carl, the landscape is littered with companies that people decided to own and then lost a tremendous amount of money not because of peloton being 41, but my wife used the peloton. >> did she use the new boxing -- >> i will say this, it worked. >> you mentioned three of the plays of the pandemic, but on doc docusign, people are going back to signing their names again

i mean, they're not. >> that's a great point. this is this quarter post the height of covid. it was terrific. they therefore said it's going to continue. we have real life. post-covid, they didn't. they had a bad quarter of these ones you have mentioned, they all have a lot of money they all, if they were right now -- this should have done it earlier, make acquisitions that can validate what they do, they would be well -- that would be money well spent, david. you're just nodding on the podcast, leave me hanging. >> i'm not leaving you will hanging. that's an interesting idea zoom is trying to do is deal, it didn't work. f five9 went up, they had to keep increasing the dividend, and the stock price got crushed and

shareholders of five9 say no, thank you. >> you have to do something where you're beyond zoom, companies that reinvent. we want an intuit. okay i think there are companies out there, salesforce, okay, runs out of the growth, and then they buy slack or mule soft or tab lo what happens is immediately people doubt i didn't think there was anything there, about but my colleague is a credit rating checker. you now hoe people used to go to zillow and see how much the house went up? >> people do that? >> i never engaged in that house pornography. toll is at an yacht time high. we sauce an activity in re-fis

basically came down. you know, this so-called notion that just because you say it's the greatest time ever, that's rooted, david, in the idea that it can't be good this is something that started, really in year 2000. anytime anyone said anything is good -- doug yearly, who has been in the housing business -- he's the guy i go to, has said it's really great. there's a shortage of houses, because of the great pandemic, you can say, bell, that will be over, but we don't build as many houses as we did 40 years ago, so i think the housing story is a good one for lennar and toll, they do very well. >> toll has been a good stock to own. >> it's well run company. >> that's important.

>> doug is the real deal it's a philadelphia company, so therefore it's fabulous, but i do think -- >> i know one, we work for it. >> okay. okay toll is up 65% for the year. you don't have to outthink this market you just have to go with the companies who say, they come on "mad money" and say things are really, really great you don't immediately say that guy is a fraud how about that guy is the deal he is the one. you're never going to let it go. we're shy of the s&p closing high let's get to bob pisani. >> good morning, everybody we get this pfizer news, and this is what we get? a flattish nothing open? it seems disappointing, unless you understand the concept of

sell on the news this is a classic wall street play here. look at the time sectors right now. modest up side in some of the energy stocks, health care, banks, tech is lagging, semis for the most part are flat to slightly down this is flat here, because we had the sell on the news pfizer came out around 6:45. we rose about 20 months immediately. and then, look, immediately down, you see the spike up and down, that's sell on the news. everybody buys, we already knew that, because the markets had been working under the theory that omicron was manageable. this word "manageable" everybody

started using since dr. fauci said it over the weekend if it's manageable peak supply chain worries are with us, and it will people over the next few months. it means margin erosion worries will not be with us through the entire 2022. they'll hold up. it also means there's less fear of the fed being more aggressive to combat higher inflation so this is a series of implications about this. the key to the strength of the market is the strong economy everyone knows the fed aggressively raising rates is the killer of the markets. usually we're going into a weak economy. so the fed raising rates, that's the great killeder of all bull markets, but wait a minute, that's not what we've got. we do not have any recession coming in fact, we have the opposite of the recession. the consumer is stronger than they have been in many, many years. that's why the market is holding

up the bulls keep saying we can hold up even with the raising rates. the fed raising rates is not great, but we're 25 basis points right flow in the fed funds rate even to some may sea, that's aggressive, but still low. when you have the economy with this kind of strength, that's what's important the s&p is trading for 21 times 2021 estimates we could be nowhere near that, way lower. the market would be way lower. we would 20%, 25% lower if there were any signs we would go into any kind of recession. so, carl, if we continue to get data along the line of pfizer, the story will fix quickly from omicron to what is the strength of the u.s. consumer in 2022 right now it's terrific, but by

january, if that data holds up, that's what the story will be. carl, back to you. >> thanks, bob pisani. 'wes go to break here, let's look at treasuries and see how they're faring, obviously day three of rising yields, two-year back to 670 basis point. more "squawk on the street" continues after a short break. don't go away.

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our economy on to amoid the pandemic, facebook parent, meta, announcing it will open its offices january 31 while giving them the option to delay their turn for three to five months. they say it's designed to give plexability when it comes to returning to the afs

>> look, i default to the idea that it's difficult to say no to one. we know 800,000 people have died don't you want to see them on the holidays how do you go to work in that safe safeuation situation. >> that said, i think we've all made the point many times that people are reluctant to go the office can be seen doing all sorts of other things and there continues to be a frustrationen the part of some that see that and think it's not really about safety at all, it's about convenience. but that's an important part of what's going on here flexibility. not commute is sucertainly contributing to their desire to stay in their home office. >> there's a double standard we know a lot of people have taken

add vantage of >> huge technology companies are going to have a portion of their employee base that does not come the auflgs as much as they want like more of them to >> yeah, maybe fridays off. >> until the labor cycle turns again. >> unionized we'll know thursday. >> and cramer 's mosting a special event thursday, tomorrow at 12:30 p.m. eastern. going to share your outlook for 2022 answer member questions. >> special guests. david don't listen davl farley. talking about the reinvention of -- david, it's farley verses musk that's hot >> become a member, if you

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jim, what's on "mad" tonight? >> one of my favorite companies.

remember, you don't have to crack the chest open to do open heart surgery anymore. because of average life sciences i've been behind these guys ever since my father's doctor said we don't have to crush your dad's chest to save him the. we have bw >> what's that "mad money." >> i have a show at 6:00 and i might talk about ford. they're a truck company and a car company. >> in case people missed it. >> and you see football this weekend, probably see some of their product and the 350 is the super duty you don't call it 350. richard bransen on taking another company public via spac.

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welcome back to "squack on the street." live at cm 0 hq with breaking news our october read on jobepening and labor turnover, affectionately known as jolts.

100,033,000 job opening and of course, this is so significant because of the gap the enactive workers and we want to pay close attention to the quits rate because many are emboldened in this post pandemic economy. u.k. has a million enactival workers. meaning less workers than prepandemic. it moves from a record 3.0% and this data series started in december 2000, to the current read of 2.8%, which is still lofty but coming down a bit and that is very significant carl, back to you. >> thank you very much good wednesday morning, everybody. welcome to another hour of "squack on the street. lively at post nine of the new york stock exchange. just shy of 4700 didn't quite get to the closing high and did say three doses did neutralize omicron

>> here's three big movers we're watching stitch fix getting crushed after revenue metrics well below forecast down about 68% year to date. pluls, acpple naufrp notching another new all-time high and we'll end with southwest airlines raising the outlook and cutting estimates for fuel costs you can see those shares up 1.5% and tomorrow morning, do not miss our exclusive with the company's executive chairman and incoming ceo that's live, 9:30 a.m. eastern tomorrow thank you. out with positive new vaccine data they're saying the booster dose, the third dose provides a high level of protection against the omicron variant. she has more on that story for

us meg. >> hey, david. so, essentially looking at the blood of folks who have been vaccinated with two doses or three. rrs and what they found is folks with two doses did see a 25-fold reduction in the neutralizing antibodies against omicron and you saw that restored up 25 fold we talked with pfizer's ceo about what that means for the vaccine. here's what he said. >> the vaccine against omicron is basically the equivalent of two doses of vaccine with the original strain. these are good news. the two doses, the reduction was significant. but the third dose restored the very, very high. >> they said riit's likely two doses will provide protection

against the severe disease from omicron. here's how he said they'll make the decision and when. >> the ultimate proof is coming from data. we needto see people receive two doses and three doses, have an outbreak of cases, severity of cases we have enough data to say omicron, the solution will be third doegs and monitor to see when the third dose wins or not. or if we need go to a specific against omicron variant vaccine. >> and if that is needed, they sha they should be able it get the first commercialbatches ou by march, pending regulatory clearance. we're seeing a lot more folks getting their booster shots. and dipped around thanksgiving and continues to increase and this may of course drive more demand at this point

>> when do you observation pect to get similar types of guidance or we don't know whether it wil be positive or not but folks mixing and matching. >> yeah. we are expecting a flood of additional studies to come out over the coming weeks. most likely from moderna similar studies we just saw from pfizer and bion tech and there's independent labs daing all of this we'll see data come in about the different conversations. and the vaccines that people got. >> meg, appreciate that. what a morning thank you veer much. and talk about the market reaction to the news earlier and as you put it, the index is bending but not breaking for the third or fourth time this year

>> the net effect is a round trip for the s&p 500 it makes some sense. it's convenient we're back at a place where we thought three shots of a vaccine was going to be good protection against covid. we have confer ormation we thinf that we first got the levels about november fifth things seemed too bullish then over heated sentiment. a lot of momentum behind the move and i think we've spoent four or five weeks testing it on the macro front. and really severe positioning shot we deleveraged a lot of investors got flushed out. and it's a cleaner set up right now. we're facing arguably a tough love fed a lot of the year-ahead outlooks

are basically saying lower absolute returns maybe a bit more chopiness as it accelerates, it makes sense. we rarely get the year we think we're going to get when we do the year-ahead outlooks. >> specifically wage inflation, the kwquits rate down to 2.8 average hourly earnings were a tad light. coming up on friday. >> it could be it does seem as if we have moderating influences there. the inflation indicators have come off to some degree. i think there's reasonable stakes in the cpi number and perhams reason not to worry about it kind of running away the upside right now that, arguably is what the bond market has been hinting at the last couple of weeks >> thank you with a mixed picture for the major averages today

it is a big day on capitol hill on k crypto as well planning to dig in to challenges that come with the innovations and kate rooney is going to be watching all of it and has more for us >> this is crypto's biggest day yet in washington. you'll see a lot of big names testifying today the ceos of sirkacircle, bit thy and the ceo of stellar weesk we've got written testimonies ahead of time. first, they all say the industry is booming and here to stay in some form. as circle puts it, quote, stablecoins and internet-inateival capital markets are not too big to fail but too big to ignore. these companies underline

they're already extensively regulated. they say actors tend to attract headlines. built ftx is not one of them and asking for updates in washington third, they are appealing to congress members' competitive side they're talking about economic interest in the u.s. and the interest risk of not keeping up with innovation and tech talent leaving. it is a -- there are a surprising number of tech leaders stlat moved to portugal and have a more positive posture towards growth and innovation. and finally, they try to make

the point that cryptocurrencies gewell beyond bitcoin. it's talking about the next iteration of the internet. the hearing is still going on. >> sounds like the might be rich for some headlines we're going to monitor that and bring you updates as they do happen and a roadmap for the next hour. with the markets off of the initial highs with the s&p trying to goat to a closing high >> and a first interview with sir richard bransen taking another company public via one of his spacs >> and we're going to talk at the ceo of planet labs, fresh off ringing the opening bell here we have got such a big sw hoof "squack on the street. it is straight ahead

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comcast business. powering possibilities. welcome back it's now time for our etf spotlight. we're looking via the ita fund up 1.5%. up 8% in the last week of trading, thanks largely to names -- and the billion dollar

defense bill, expected to clear the senate now and increases the pentagon's budget above what president biden had requested. meaning a growing top line and boeing and lockheed martin all higher today, all in the green over the past week butted another name in the fund, virgin galactic. having a bumpy year of trading sir richard branson will join us as he looks to take another company public via spac. that's right after this break. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi.

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is that tom brady? yeah. he comes in to recharge, get software updates. you know. let's go! welcome back to "squack on the street." another day, another spac. trading up a bit after announcing they're merging with an online retailer focussed on sustainability to take that company public. here to chat the news, sir

richard branson, founder of virgin group and stewart, ceo and cofounder of growth collaborative. congradilations on the news. i'll start with you for the latest deal. while growth collaborative >> thank you well, we wanted to partner with an exceptional consumer products company and virgin's missions and perfect opportunity to bring the two teams together grove is a fantastic business. massive, i think, future growth. brilliant management and what it's doing is deeply aligned with virgin's folkice and ekose. it's at the growing demand of personal care products and focussed often a sustainable future with the ability to grow quickly, to the ovate quickly and it has access to millions of customers and it's the leader in

this space so, it has an ambitious goal of becoming plastic free by 2025, which i think all of us would welcome and that's one of the key thinks that got me involved. and if has tremendous scale opportunity. it represents only, i think, a fraction of 180 billion market of personal care in the u.s. enormous growth, i think, for international growth and in the u.s. itself. i think it clearly has an opportunity to be the global brand. and we'll work with that team to build it, establish it as a world leader and stew i think will tell you more about the excellent work he and his team have been doing. >> the plastic-free goal got my ascension too. how quickly is grove actually growing? >> in 2018 to 2021, our kagers

up 54% the way we look at this is grove's purpose has been to transform the consumer products category products in almost every home in the wurlds world dish soap, laundry, bath tissue. those that have a terrible track record in terms of their impact on the environment we believe these products can be transformed to have a positive impact on our health and environment. if you look at the market size, we've seen really strong growth, almost $400 million we expect to do in 2021 but we think we're just getting start said in tapping into growing consumer demand for conscient conscientious product across the market >> and how do you do that? in the near term, we've heard about the supply chain issues,

higher materials cost that so many are dealing with right now and when you talk about a goal like plastic free by 2025. how do you make those products and then keep them affordable and competitive verses everything else out in the market >> you got it exactly right that we have to produce products that perform as well as what consumers are used to, natural or conventional, that over deliver from a sustainability perspectival and at a price point approachable to the vast majority of consumers. we're proud it is successful direct to consumer and successfully launched in target this year, really bringing a big tent to the sustainability message. as we look over the long term and as we address all of the well-publicized supply chain issues, our focus is how do we live d liver in terms of

efficacy, design and so we can build the millions of customers strong today folks joining our journey in this huge category that touches so many of us. >> what do you see as your core competency because i wonder if amazon, which has so mump coming in and going out, could come up with a p product category to compete with yours for those that want to pursue this particular area in terms of consumer products >> this is a big market and what differentiates us from others i think will participate in what i think is aban obvious transition of hpc products and single-use plastic. because of our legacy as a

direct consumer brand with personal relationships with millions of consumers, our level of consumer data and understanding of the natural products shopper is second to none and that has allowed us to drive market-leading innovation again and again. we created the category and zero waste our surface cleaners which we have over 5 million market leaders and that data that comes from the direct to consumer business model, gives us the ability to out perform everyone in the field and i believe success comes from authenticity and people and we are -- have always been a mission-driven business this is a company where every individual shows up to work ready to change the world. and i think that attitude drives real innovation. >> and this speaks to the fact thats this is an esg play. you've been involved in quite a

number of spac deals in general. and other companies you've taken public through your own spacs. and now perhaps stabilization of the vehicle. will you do more these types of deals? >> i believe that spacsver boosted entrepreneurism since the public company started and they will continue to be and there would be bad spacs and good spacs but what's key is the people, who's behind the spac. stew and his team are brilliant and therefore, myself, i'm not putting a lot of personal money into it. and person who used to run unilever is advising stew and putting his own money into it.

we believe in this company and believe it's the kind of company that should be public via spac spac is unleashing a whole new era of entrepreneurism in america and i hope europe and other parts of the world will follow it's been exciting >> even the sec has has plenty when it comes to spac and the alignment of yourself, for examp example and the general public do you see yourself owning the shares for a long period of time you potentially could make money but obviously shareholders will not. >> i can't forecast how long we'll own shares but we generally are long-term holders of shares with most of our companies, like

virgin galactic, orbit, we spent 20 years building the companies. we then will start maybe selling shares down and using the money to invest in new companies like grove and that's the way virgin works. but i mean, it's up tothal team at grove and stew and virgin team to try and make this a highly successful company for shareholders and also to make a real difference in the world and i think they'll be able to do both. >> i'd be remisif i didn't ask you about space. 2021 is going to go down in the history books with all the firsts we saw this year, including your own trip to the edge of space in july, which was historic in itself as virgin galactic's competitor, they get ready to do their third human flight tomorrow.

in general, how would you character isis the moment we're in and how does commercial space continue to evolve >> i think all it's been the most exciting year as you said space in many, many decades. and i think each of the companies, who were involved in space will go from streng to strength the amount of people who have signed up since my flight to go to space, with virgin galactic, has been extraordinary and i think that once we have the spaceships ready and the mother ship ready, it's going to be very, very exciting year ahead. >> you just touched on it, but the fact you have sold several traunchs of virgin galactic stocks to help support leisure and hospitality businesses are you confident the worst of

the virus impact is over, especially given the news we're getting from pfizer and biontech about the ability of boosters to circumvent this latest variant >> yes, i am the western countries and now, i think, african countries, are beginning to get ahead on getting their people vaccinated. and if we just take america and britain as examples, i mean, the amount of people vaccinated in britain is well over 90% and the boosters have been rolled out really quickly. so, yes, very confident. i always said i can't believe there's a need for online travel restrictions no more need for people flying on planes or pubs or restaurants, particularly since

everybody who flies on planes is vaccinated and yeah i'm confident about the future i think we've almost put it behind us in many countries. >> would you anticipate -- >> for the vaccinated. i'm obviously still worried for the unvaccinated >> yeah. so, would you anticipate in 2022, we see a return to normal or healthy levels, when it comes to air travel and cruising >> as long as governments don't over react, i think there's no reason at all why cruising in airlines shouldn'tbe as normal as pubs and restaurants. >> we appreciate your insights on all of the things we touched on today and congratulations on the deal to both of you. richard and stew >> thank you, everybody.

let's get a news update with rahel solomon. >> and heresler what's happening at this hour after 16 years, the angela merkel era is over shoelz is takes power. great britain, australia and lithuania won't send any top officials to the olympics in beijing. it's a protest against what the u.s. is calling ongoing genocide french officials have released a saudi arabia man they thought was connected to the journalist khashoggi. checks determine he's not the former saudi royal guard member suspected in participating in khashoggi's murder inside istanbul

and in a hospital, being treated for a colon tumor. he'll be discharged in the next couple of days keep your eyes on shares of roku as they reach a multiyear agreement with google to keep youtube and youtube tv on the platform shares back. about a three-weekighe hh re a lot more ahead stay with us you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

we're about an hour into the trading session. take thing a breather after the jump to start the first two days of the week. the s&p literally flat the dow similar situation and the nasdaq also flat that's all i have to say about that right now. for that's after earlier gains we have since given back on the vaccine news

steve liesman is with us taking a look at how today's pfizer news could impact the fed's next move, which speaks to what we're seeing in the markets. >> markets are digesting this positive news from pfizer as another way that they're going to increase the timeline and immediate reaction came from markets up to 71 basis points, and now at saevltd 70. that brought the yield to its highest level since the pandemic began. been on the rise since the fed announced plans to reduce monthly asset purchases or tapering last week fed said they'll likely accelerate the taper, at the meeting last week. it's a faster taper means the

fed could start raising rates more quickly and steeply next year and that's how the market is processing the fipfizer news. and a second hike well priced in for september and now the market feeling pretty comfortable a third hike in december, trading at around a 62% probability for the third rate hike in december and the outlook comes with little negative equities a rising 10-year yield suggest they see more growth and inflation with the news here it's always possible they wake up and have a negative reaction to the repriced fed. but the reaction is going to give the fed positive feedback to pursue a faster taper and rate hike timeline the thing to watch now is the march probability, which is 41%, as i speak but who knows. i think that's too early but could happen >> especially if they get the

taper out of the way, steve. we'll find out more next kweek for more on the mark this morning, adam, good to see you again this morning >> good to see you >> could the market start talking about hikes as soon as march or april >> look, anything's possible you're going to see some economic slowdown and roll over. we just looked at 150 macro variables as part of the research note to our clients and the general economic activity, industrial activity has softened some. consumers remaining robust i think we need to see what happened six months from now as some of the commodities roll over and stimulus and stuff to really see where inflation settles. the five-year five-year break doesn't look like there's going to be a lot of inflation figures out.

and i think they do watch that metric >> i do wonder where you are right now on consumer macro. data track did a piece this week on creeping higher credit card balances today the times takes a look at excess cash at the household level, they argue is eroding do you think things are trending that way in the absence of more stimulus >> i think they have to. the 90-day credit card delinquency is at an all-time low. people can make the minimum payments for 90 days and that will probably slowly creep up to next year. we know we're not going to see the helicopter money and my guess is it will slow six months frumg now. when i look at stocks and relative estimates for companies that recorded in january and april, i think confidence looks

better than industrial companies. because we know we're seeing roll over and the estimates, the analysts have in there are very optimistic for margin expansion. i like playing the six-month trend on the macro for consumer relative to what's embedded in the estmimates for the stocks. >> we're finally going to see the shift we've been talking about for months now, for goods to services and that's where investors need to be position snd. >> obviously we had the sharp sell off after thanksgiving. it has been risk on from the standpoint of consumer services have led, energy, transports things reopening plays and a lot still have suppressed margins. part of the game, when you buy stocks is buy margins whether they're suppressed i think a challenge with machinery and capital goods and industrials, the estimates are continued for the margin

expansion. that's where the risk is, is paying high multiples on companies with high expectations so, i think the risk reward is better in terms of portfolio management >> i'm taking a look at some oaf your other recent notes and i buybacks gen real have failed. give our audience the research behind that claim. >> what we do -- i don't like the word claim what we did is analyzed all the stock buybacks for the biggest 3,000 u.s. equities over time. there's no doubt that companies that did buy big buybacks, out perform stocks that deluded the share base through the financial crisis but since the financial crisis, stocks doing big buybacks have not, as a basket, out performed stocks doing no buybacks i think you have to ask yourself is that a great use of capitol

obviously for individual stocks that is the case i'm talking about when you add them all up. i think analysts and investors should push back saying wait a minute, are you sure it's the best way to deploy capital should there be some outher way to improve your leverage the buyback itself has -- in part it's because some of the management teams are enumerated on first share metrics and they have an incentives to do that. but i think, in aggregate, companies doing big buybacks, not out performing companies that do none is a worrisome sign this isn't necessarily what the market always wants. >> finally, adam, we had you on a couple of weeks ago. "because you expect a lot of pricing declines next year into r and into 2023, you said our

best guess 2024, when the fed first raises the front end we wouldn't be surprised, shocked if it was later than that." has anything happened to dissuade your of that notion >> i don't think so. i don't know but i know everyone else doesn't know. i'd be surprised if it was done in march that seems really early to me. the tapering makes a lot of sense. i get that so, not expanding the balance sheet at the rate you were expanding it makes sense to me and most people. but if the mandate is really stable pricing and full employment, are we going to have stable pricing in the next year are we going to have full employment i think we're pretty far away from assessing those things in absence of a massive stimulus. i think you want to start to anniversary all the huge stimulus and see where we come out. there's no question there are inflationary things that are different. i think we talked about deglobalization and

semiconductor packaging and testing, for example i think there will be more fiscal stimulus in different forms. there are things different from 2019, that's sure. i think the 10-year yield and five-year break evens are things i would think would have to change for the fed to say market pricing is tolling me it's okay. >> inresearch has been great, adam good to have you on the beat appreciate it. >> have a good one >> still to come ri it's listing day for planet labs, going public today we'll talk with the ceo and cofounder. that's right after the break don't go anywhere. ♪♪

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welcome back to "squack on the street." planet labs making its public debut this morning via spac. and a company valued at $2.8 billion and as you can see, up 5%. joining us is planet labs cofounder and ceo. will, congrats on the milestone today. great to have you back on the show thanks wonderful to be here such an exciting day to ring that bell and a fantastic journey of planet. so, excited to be here we set out ten years ago, in our garage to image the world every day with satellites to make the data democratized access to it we thought we could help lots of customers and help us take care of the planet. and it took launching the largest satellite fleet in human history, it took building lots of partnerships and we did it. we got 200 satellites up there

we're making the impact and that is just the beginning of potential and this launches us to a new phase we have plenty of capitol to build the business and we're well poised to go in the market and have it be in the impact at the same time. >> and capitol raised almost $600 million in the close tofg deal how specifically will you deploy that now >> one is building up the sales and marketing team we only have 21 people doing sales last year and just over the $100 million in revenue last year we need to scale that up all the potential partners around the world, ag companies, mapping companies and so on. secondly in software because a lot of people can see potential value in our data like hedge funds, insurance, and so on. we need bridge the gap to data they can use by doing analytics

it makes it easier to use. sales and marketing and software >> let's talk about how quickly you are expecting to grow. you mentioned a 40% growth rate over the next five years is it still your expectation >> i'm confident in our plans. we did project growth and we have all the pipeline to go after. >> how large will you have to grow the constilation to get there? >> it's fully built and now we're enabling the utilization of the data. we constantly update the satellites but the main effort is on software to make it easier and easier to use. not just for google and in big ad companies or government but lots of other users like developers and those hedge funds and insurance companies and so on and that takes a fair bit of

software >> and i'm curious about new use cases then defense intelligence is something else you've been mentioneding as well >> we help countries with border security, also disaster response and recently the german government with flooding the california various counties with the wildfires helping them prevent those disasters and help them in real time we're helping with agriculture big ag companies and opening up new markets, to answer your question hedge funds is one of the most interesting areas in finance because we know the soy yield of the orld's soy fields and the mining outputs from all the world's copper mines and so on but we have to turn that into time series calibrated data. for that's why we're focussed on software to unleash the markets. it's going after new ones with new software

>> the hedgefund managers, they have a hard time with anything difficult. what's the pricing power on these kinds of things? it's not as though you don't have competitors or satellite imaging companies feeding data, for example too, hedge fund managers years and anything like that. >> our data set is completely unique we have the largest imaging fleet and we image the whole land mass of the u.s. every day, that is about 100times any other earth imaging fleet. these daily scan is completely unique and that enables new markets like agriculture you can't do that with a point and shoot camera you have to scan all the ag areas and that's 25% of the land mass of the year satellites are uniquely positioned for that in our 200-satellite fleet. scan and help customers to improve ag yield across all

those farmers' fields. it's opening up brand-new markets. >> yeah. i mean, will, microsoft and amazon have both been making big bets on space-based capabilities i hear you talking about software, data and analytics where their cloud business is concerned. one of your cornerstone investors is alphabet, as well when you make those investments yourself around software, are there cloud computing capabilities to be gleamed from your company, if so, how great is that opportunity? >> we want to partner with those companies that are building cloud systems. we do have a strong partnership with google. they participated in the transaction here and, also, we have a big partnership to go to market together with their cloud services look, we want to leverage the latest compute and machine learning that the big companies like them develop and apply that to our data. our data is ready to apply all that machine learning and

analytics to extract out features the same things that are used to extract dogs and cats out of videos and pictures you put online the same capabilities that are useful for pulling out information from the satellite data how many ships in the world's ports and how much agriculture, et cetera. >> thank you, congrats again up 3.5% right now. coming up on "techcheck" why morgan stanley is calling rivian the one that could challenge tesla. we'll talk to adam jonas at the top of the hour. we're ba ia up mutckn coleines

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cnbc launching index next week we have the best music for those promos consumers and investors most interested and looking at one name in the group that is down more than 40% year to date but certainly gets the attention of investors christina. >> and my attention, too, with that music as economies open up, how will the momentum continue for zoom that's the stock we're talking about. down 27% just in the last month or so. 26 right now and it may be, quote, the most

important communication company to come along in many decades as cathie wood described when she snapped up some shares the analysis is that zoom faces a tough set up to increase revenue. so, zoom's business primarily relies on upselling those who have the premium and 40-minute free model, as well as larger customers with more than ten employees or those who bring in more than $100,000 and as needham's analysts wrote, we fear increased churn at the low end of the market could become a head wind will people start abandoning the platform and then competition from larger incumbents who have more resources like microsoft skype for business and salesforce, slack and, of course, apple. lastly tensions with apple according to analysts 80% of zoom rnd is based in china, although the company is building up operations here in the united states i reached out to zoom and very receptive and directed me to their 10k filing that time is cheaper than other geographies

as for the future, zoom sell zoom phone and zoom marketplace and it's a crowded field with many players but cloud-based communication services are expected to be a double-digit growth industry through the decade david, back over to you. >> christina, thank you. that will do it for us on "squawk on the street. "techcheck" starts now good wednesday morning welcome to "techcheck. i'm carl quintanilla today markets are lower depite positive news that booster s shots. is